S&P assigns B to Future Land notes

Standard & Poor’s said it assigned its B long-term issue rating and cnBB long-term Greater China regional scale rating to a proposed issue of U.S. dollar-denominated senior unsecured notes by Future Land Development Holdings Ltd. (BB-/stable/--; cnBB /--).

Future Land intends to use the majority of the proceeds from the proposed notes to refinance some of its debt.

The rating on Future Land reflects the company’s high geographic concentration in the Yangtze River Delta and its short record in developing mixed-use property projects. Future Land’s good sales execution capability of its asset-churn business model, established market position in its home base of Changzhou, and disciplined financial management temper the above weaknesses, the agency said.

S&P said it assesses Future Land’s business risk profile as “fair” and its financial risk profile as “aggressive.”

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